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US Examines Dividing Google in Monopoly Case

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US Examines Dividing Google in Monopoly Case

byBilkisu Kasim
October 9, 2024
in Business
0

The U.S. Justice Department recently informed a federal judge that it may recommend a partial divestiture of Google’s operations to address the company’s dominant position in the online search industry, Bloomberg reports. Such a move could lead to an unprecedented antitrust breakup of the tech giant.

 

In a Tuesday court filing, antitrust regulators suggested that Judge Amit Mehta could order Alphabet Inc.’s Google to provide access to the data it relies on to generate search results and build its AI products. The Justice Department is contemplating both structural and behavioral solutions to prevent Google from leveraging products like Chrome, Play, and Android to unfairly boost its search engine and related features, including AI-based search capabilities, to the detriment of competitors.

 

This filing marks Washington’s most significant move to dismantle a corporation for monopolistic practices since the attempted breakup of Microsoft over 20 years ago. The 32-page document presents various options for Judge Mehta as the case enters the remedy phase.

 

Regulators highlighted that Google’s illegal agreements with other tech firms provided scale and data benefits, enabling its search engine to become the default choice on mobile devices and browsers. Additionally, the Justice Department may push for a requirement allowing websites greater control over opting out of Google’s AI products.

 

The agency is also exploring solutions to address Google’s control over the search text advertising market, including requiring the company to give advertisers more insight and choice regarding ad placements. Furthermore, the Justice Department might seek restrictions on Google’s ability to fund search competitors or emerging rivals.

 

A more detailed proposal for potential remedies is expected to be filed next month. Google has yet to comment on the recent developments. Previously, a U.S. judge found Google in violation of antitrust laws in the online search and search advertising markets, with Google stating it plans to appeal the decision.

Bilkisu Kasim

Bilkisu Kasim

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